What is the difference between next installment and principal payments?

When making a one-time payment, we give you two options on how you would like the payment to be applied to your account:

Next installment

When you choose this option, you are posting a payment to cover your next payment that is due.

For e.g., If your due date is on the 15th and you post a one-time payment applied towards next installment on the 9th. This payment will cover the amount that is due on the 15th.

Principal

If you choose this option, it is considered an extra payment that has been made to help reduce your overall principal balance and reduce the amount of interest that you pay.

E.g., If your due date is on the 15th and you post a one-time payment applied towards principal on the 9th. This payment will not cover the amount that is due on the 15th. You would have to post an additional payment to cover the amount that is due on the 15th.